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Custom Wheel Operations Benefit From Growing Consumer Interest In Vehicle Appearance
05-24-07
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Based on sales through the auto parts channel, dollar sales for appearance products and accessories were over 17 percent higher in the month of March 2007 versus the same month in 2006.

According to information from consumer and retail information company, The NPD Group, marketers of vehicle appearance products could see a boost in business this spring. The firm reports 12 percent of consumers surveyed last fall indicated they would spend more money on vehicle appearance this year; only four percent said they would spend less.

While still in it's infancy, there are fewer than 200 custom wheel and tire rent to own stores operating in the U.S. today, wheel rental is considered by many RTO industry insiders as a major growth opportunity for the coming decade.

In an era where the "golden window", the period of time between the introduction of a new product and the time its retail cost drops below the level at which the typical RTO consumer will purchase rather than rent the item, the consistently high margins of custom wheels are a welcome sight.

In March of this year, a poll by Specialty Equipment Marketing Association (SEMA ) found that Appearance and vehicle-body accessories top the list of products sold by SEMA members (see story).

NPD says early data indicates that consumers may be following through on their promise to spend more. Based upon NPD’s Early Indicator Report on sales through the auto parts channel, dollar sales for appearance products and accessories were over 17 percent higher in the month of March 2007 versus the same month in 2006.

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“Traditionally, the spring season brings consumers outside and into the driveway for some much needed car care” said David Portalatin, director of industry analysis for The NPD Group. He adds, “The growth we’ve seen so far is especially encouraging, given that winter has lingered in many parts of the country a bit later than usual.”

Portalatin sees an opportunity for broader impact, beyond just appearance. He continues, “Marketers of aftermarket products and services should consider how they can leverage this opportunity to drive sales in many categories. Think about bundling and cross–promoting maintenance and/or repair–related categories to help consumers take care of their cars, inside and out.”

NPD’s Car Care Trac data shows that although vehicle appearance is a concern for drivers across the demographic spectrum, consumers ages 18–24 are a bit more likely to purchase appearance products. This segment is quite image–conscious and this attitude extends to their vehicles, especially this time of year. In addition, higher income consumers are also more likely to buy appearance products. These consumer segments may hold the key to unlocking big sales this spring.

Having the right brands will also be an important factor. When asked how they would respond if their preferred appearance product brand was not available, one out of four consumers said they would not make the purchase at that time. One in five would go to a different store to find their preferred brand.

Although favorite brands and ease of use are driving forces in vehicle appearance purchases, nearly half of the do–it–yourself appearance product consumers make their purchases impulsively. These consumers are 47 percent more likely to decide to buy products once they have gone into the store, heightening the importance of in-store placement, promotion and appealing packaging.

 

 

 

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